Advertising

Embraer retains guidance despite drop in underlying Q2 profits

Embraer is maintaining its full-year financial and delivery guidance for 2019 after today disclosing an operating profit of $26.6 million for the second quarter, during which the manufacturer shipped 51 aircraft.

While the $26.6 million earnings before interest and taxes (EBIT) marks a sharp improvement on the $20.3 million loss it recorded at the same stage last year, that figure was heavily impacted by a one-off $127 million charge related to the delayed entry into service of the KC-390 military airlifter.

On an adjusted basis, Embraer's second-quarter EBIT for 2019 was roughly a quarter of the $106 million recorded in the previous period when the one-off costs are excluded.

Embraer says the lower adjusted EBIT figure is largely due to lower profitability in its commercial aviation segment on "slightly lower deliveries and a less favorable mix", as was well separation costs recognised during the quarter related to its forthcoming strategic partnership with Boeing.

The Brazilian manufacturer delivered 26 commercial aircraft during the quarter - including 22 E175s - compared with 28 aircraft in the same period of 2018. That accounted for revenue of $630 million in the second quarter - 45.7% of total revenues for the three months - down 16.7% on the same period last year, when it represented 60% of the total.

Embraer delivered 25 executive jets during the period, five more than in the second quarter of 2018.

The second-quarter performance means at the halfway stage of the year Embraer has delivered 37 commercial jets - five down on the first half of the 2018 - and five more executive aircraft, having shipped 36 as of 30 June.

But the airframer adds: "The company reiterates its 2019 guidance for 85 to 95 commercial jet deliveries and 90 to 110 total executive jet deliveries, with an increase in both commercial and executive jet deliveries in the second half of the year."

It also maintains its 2019 consolidated revenue guidance in the $5.3-5.7 billion range.

Advertising
Related Content
Advertising